Understanding the Different Types of Insurance

InsuranceWhen it comes to insurance, there are many types: life insurance, health insurance, car insurance and more. Each type has its advantages; however, when it comes to disadvantages, each type only has one, with it being the monetary factor. Obtaining insurance costs money.

Life Insurance

When a person obtains a life insurance policy, he or she will be financially protecting loved ones in the event that he or she becomes deceased. It is especially important for someone to obtain life insurance if he or she is the sole income provider for the family. This way, if the policyholder dies, the family will be provided the necessary funds that it takes to continue living as they were currently living. Life insurance comes in several forms, with one of the most popular types being term life insurance. Another popular type is whole life insurance; however, this type can become quite expensive, costing a person several hundred dollars a month.

Health Insurance

Health insurance should be purchased by anybody and everybody. For students, it is possible to stay on their parents’ health insurance until a certain age. Health insurance is important because it helps a person to obtain proper medical treatment. If a person does not have health insurance, he or she will most likely have to obtain medical services through an emergency room. Otherwise, the services rendered through private doctors’ offices will be too financially burdensome. There are thousands of health insurance providers, with plans ranging in price rates.

Car Insurance

Another important type of insurance to obtain is car insurance. Whether a person is driving a brand new car or one that is 30 years old, the vehicle needs to be insured. In fact, within many states, car insurance is a legal requirement. Without car insurance, if a person becomes involved in an accident and is at-fault, this can leave him or her liable for thousands of dollars worth of damages whether they be for medical expenses or property damages. Just like most other types of insurance, car insurance comes in many forms, with the three most basic types being liability, liability with comprehensive, and full coverage.

Follow Us!

  • Flickr
  • Delicious
  • Facebook
  • Twitter
  • LinkedIn

Sign-up for our newsletter!

Sign-up and receive information about finance sent right to your inbox.